If you are a homeowner in Utah, you may be wondering, will my mortgage ever go down? Keep reading to find out, the answer may surprise you.
Why Your Mortgage May Never Go Down
The average mortgage is sitting at 3.8% right now, with the national average mortgage at 4.2%. If you use one of the lower interest rate options, your monthly payments may never go down. If you want to know precisely what the interest rate for a home loan is for yourself, you can use the Freddie Mac Website. The two popular options are the 30 year fixed loan and the 5/1 ARM. The reason for this is if you are lucky enough to buy a home for over $400,000, you will probably not pay interest on that loan. There is not a lot of home buying that involves more than $400,000. The good news is there is no way to prepay your mortgage.
When Will My Mortgage Go Down?
The answer to this question is probably different for every single person. But here are a few things to consider. First of all, when we talk about mortgage rates, we refer to the fixed rate of the mortgage. The value of your home fluctuates, so if your mortgage has a fixed rate, it will also fluctuate. Now, a fixed rate is just one piece of the puzzle. It is essential to know that other factors can impact the price you pay for a home. One factor is the amount of your home that you own. If you are looking to buy a home, you may be paying a higher interest rate to make up for the fact that your home is smaller than what your lender has deemed acceptable.
Mortgages are fixed-rate loans. This means your monthly payment will stay the same regardless of how much interest is added to the loan, as well as when the loan ends. Since interest is added to the loan every month, your total interest paid will remain the same. For example, if you borrowed $100,000 and paid $1,000 in interest every month for 30 years, your real interest paid would be $1,500. Every year a fixed-rate loan has an interest rate reset. This happens once a year, in March. Usually, you will be able to lock in the new interest rate for the life of your loan with a locked-in interest rate. The lock-in rate is typically the same as the current interest rate. This is good because it guarantees that you will pay the same amount each month for the life of your loan.
Contact Utah Sell Now
If you’re tired of sitting there wondering, ‘will my mortgage ever go down?,’ contact the experts at Utah Sell Now today. We buy homes in the Salt Lake City, Utah, area in any condition fast and in cash so you don’t have to go through the hassle of staging and showing your home, or paying a realtor. Call us for your no-obligation written offer and you could have money in hand for your home in as little as seven days.